Tiscali announces it has reached an agreement for the disposal of its South African ISP subsidiary, in line with the group`s strategic plan to focus its financial and managerial resources in its key markets.
Tiscali entered into an agreement with MWEB, a South African ISP and a subsidiary of MWEB Holdings (Pty), for the disposal of its South African subsidiary Tiscali Pty Limited.
The transaction is subject to the approval of the South African competition authority. The agreed price for 100% of the share capital of Tiscali (Pty) Ltd is ZAR 320 million (ca EUR 40 million) to be paid in cash upon closing.
The agreed consideration does not include the cellular business, which will be the object of a separate transaction expected to take place before year-end. The price for the disposal of the cellular business is expected to be over EUR 5 million.
Statement by Diego Massidda, CEO of Tiscali SA: "From a Tiscali SA perspective, I am satisfied with the conclusion of the sale process, and it is now simply a matter of waiting for the completion of the deal. Until then, it is business as usual.
"As far as our clients are concerned, I do believe that this is the best outcome. The buyer is a solid and established ISP in SA, and will be able to continue delivering service at the standard our clients are accustomed to."
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